Kushima City, Miyazaki Prefecture, was interviewed by a person concerned in the prefecture that it had borrowed about 1.2 billion yen from a financial institution without taking the procedures stipulated by the Local Government Finance Act as working capital for a municipal hospital that continues to run in the red. I understand.
The prefecture said it was a violation of the law and demanded that it be repaid promptly.
According to Miyazaki Prefecture officials, Kushima City borrowed about 1.2 billion yen from financial institutions in the five years up to last year as working capital for municipal hospitals.
Since most of the repayment period is 10 years and spans the year, it corresponds to the procedure of "issuing local bonds", but at this time, Kushima City did not obtain the consent of the prefecture stipulated by the Local Government Finance Act. about it.
Also, according to the standards of the Ministry of Internal Affairs and Communications, borrowing of working capital is not permitted as a reason for issuing bonds in the first place.
Miyazaki Prefecture requested Kushima City to repay about 900 million yen, excluding the repayment, to financial institutions as soon as possible to correct the state of violation of the law.
Kushima City explained that "there was an error in the recognition of the person in charge."
It seems that the "Financial Adjustment Fund", which is the city's savings, will be used for repayment, but the balance of the Kushima City fund is expected to be 1.3 billion yen at the end of this fiscal year, and will decrease to about 400 million yen after repayment. ..
Kushima Municipal Hospital has been operating in the red for nine years due to the declining occupancy rate of beds, and at the most, it posted a deficit of over 300 million yen a year.
Kushima City told NHK that "I can't comment."